Supreme Court Rules "Language Allowance for International Flight Crew is Ordinary Wage"

[Asia Economy Reporter Kim Hyung-min] The Supreme Court has ruled that the language allowance paid to international flight attendants by Asiana Airlines qualifies as ordinary wages.

The Supreme Court's First Division (Presiding Justice Park Jung-hwa) overturned the lower court's ruling, which had dismissed the lawsuit filed by 27 Asiana Airlines employees, including Mr. A, against the company for severance pay, and sent the case back to the Seoul High Court with a partial victory for the plaintiffs, the court announced on the 19th.

While the Supreme Court upheld most of the lower court's judgments, it viewed the language allowance for international flight attendants differently.

The court stated that since the language allowance was paid monthly in the same amount based on language proficiency levels, it should be considered ordinary wages that are regularly paid in fixed amounts.

The court added, "It is difficult to conclude that the language allowance, which is paid regularly and continuously according to the wage agreement, was given solely for motivation and encouragement, regardless of the value assessment of prescribed labor."

Mr. A and others filed a lawsuit against the company, arguing that the language allowance for international flight attendants, paid based on English, Japanese, and Chinese qualification test results, should be regarded as ordinary wages and that severance pay should be recalculated and paid accordingly. They also claimed that bonuses should be included in ordinary wages.

The first trial court ruled that the language allowance could not be considered ordinary wages because the payment and amount varied depending on test scores.

However, it recognized that bonuses qualified as ordinary wages and ordered the company to pay employees the difference between the recalculated severance pay based on this and the actual amount paid.

The second trial court upheld the first trial court's decision that the language allowance for international flight attendants could not be considered ordinary wages.

However, regarding bonuses, although they were considered ordinary wages, the court ruled that recalculating severance pay including bonuses and paying it was a violation of the principle of good faith, considering the company's difficult management situation.

This content was produced with the assistance of AI translation services.